Poland: Draft legislation regarding family foundations

The main goal of the bill is to introduce the institution of family foundations to the Polish legal framework.

New draft bill on family foundations

A draft bill on family foundations has been published, and includes comments in response to the public consultation process.

The main goal of the proposal is to introduce family foundations into the Polish legal framework, and to facilitate family business succession.

The draft bill would allow a new exemption on capital gains. In the area of corporate income tax, there would be an exemption from tax on the revenue of a family foundation derived from capital gains (including dividends and interest), as well as revenue from capital gains and interest received from trusts subject to worldwide income taxation in the country where established, when the property consists solely of donations from the founder or individuals who would be appointed to the inheritance as statutory heirs.

Accordingly, family foundations would be exempt from the 19% rate of corporate income tax on dividends and capital gains received from companies for which they will act as shareholders or owners. Profits earned in such a way would be taxable to the beneficiaries, if they receive benefits from the family foundation or property after the liquidation of the family foundation.

The draft bill is currently being assessed by the government, and there are expectations the provisions would be effective 1 June 2022.

Read an October 2021 report prepared by the KPMG member firm in Poland

 

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